401k vs IRA vs taxable — where to put extra savings
Sequence of returns risk: two portfolios, same 30-year average return. Bad returns in years 1-5 vs 26-30. Portfolio A runs out of money. Portfolio B doesn't. Same average, different outcomes.
54 Comments
This is the way.
Done similar analysis. Your numbers check out.
This is a masterclass. Bookmarked.
How did this perform during the 2022 drawdown?
Curious about the rebalancing approach. Annual or threshold-based?
Have you stress tested this against a 40% drawdown?
FIRE community is the most underrated corner of personal finance.
I respectfully disagree. The data suggests otherwise.
Be careful about survivorship bias in this analysis.
The psychology of money matters as much as the math.
The fee math always surprises people when you actually do it out.
How long have you been doing this? Impressive numbers.
Good luck! Keep us updated.
Any thoughts on doing this in a taxable account?
What's your thoughts on the downside risk here?
Have you considered the tax implications of this approach?
Appreciate the transparency here. Most people gatekeep this stuff.
Not financial advice but I'm doing the exact same thing.
I've been burned by this before. Your caution is warranted.
Appreciate you sharing the L's too. Most people only post wins.
Any thoughts on doing this in a taxable account?
Have you stress tested this against a 40% drawdown?
Real talk: most people can't stick to this when it gets hard.
How does this compare to just buying VTI and forgetting about it?
FIRE community is the most underrated corner of personal finance.
The compounding at year 20+ is when it gets really wild.
Appreciate you sharing the L's too. Most people only post wins.
Counterpoint: what happens if rates stay elevated longer?
How does this compare to just buying VTI and forgetting about it?
What brokerage are you using for this?
FIRE community is the most underrated corner of personal finance.
Love the transparency. This community needs more of this.
Any thoughts on doing this in a taxable account?
The behavioral aspect of investing is so underrated.
Appreciate you sharing the L's too. Most people only post wins.
Be careful about survivorship bias in this analysis.
Done similar analysis. Your numbers check out.
What brokerage are you using for this?
I was skeptical at first but this changed my mind.
I was skeptical at first but this changed my mind.
FIRE community is the most underrated corner of personal finance.
I've been thinking about this too. What's your time horizon?
The psychology of money matters as much as the math.
Be careful about survivorship bias in this analysis.
The psychology of money matters as much as the math.
FIRE community is the most underrated corner of personal finance.
Any thoughts on doing this in a taxable account?
Counterintuitively, the best time to buy is when you're most scared.
Appreciate you sharing the L's too. Most people only post wins.
Have you considered the tax implications of this approach?
The exit strategy is what most people don't think about.
Not financial advice but I'm doing the exact same thing.
The behavioral aspect of investing is so underrated.
Appreciate the transparency here. Most people gatekeep this stuff.
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